Millions of pounds are being allocated to local authorities to strengthen enforcement ahead of the Renters’ Reform Bill coming into force on 1st May. In particular, all 317 local authorities in England will receive a share of £60 million, with £41.12 million being new funding (some already distributed).
Meanwhile, the government has said over £50 million will be invested to modernise the civil courts. This will include the digitalisation of court processes.
However, the proposal is still awaiting parliamentary approval. It may miss the summer recess and could be delayed or not implemented.
In addition, a further £5 million is being invested into the housing legal aid sector. This funding will provide tenants facing eviction with greater access to free legal support.
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What this means for landlords
It is essential that landlords understand the new powers being granted to councils under the Renters’ Reform Bill. From 1st May, these include:
A duty to enforce
Councils will be legally required to ensure landlords follow the new rules.
This includes banning rental bidding wars, discrimination against tenants with children or those receiving benefits, and so-called “no-fault” evictions.
Bigger fines
Landlords found to be in breach of the law could face significantly higher penalties, with fines of up to £40,000.
Rent Repayment Orders
In serious cases, landlords may be ordered to repay rent to tenants. Repayments can cover up to two years’ rent. Tenants can now challenge offences from the past two years (previously one).
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Key takeaway
It is crucial that landlords are fully compliant with the new legislation.
Local authorities gained enhanced investigatory powers last December, and enforcement is increasing.
More investigations are being carried out where non-compliance is suspected. As a result, rogue landlords have no place in the private rented sector, and councils are taking stronger action to remove them.